Nasdaq 100

E-mini Nasdaq 100 (NQ) Futures Outlook: Netflix Forecasts Customer Growth in Q3

  • Netflix gave investors hope with optimistic growth forecasts.
  • Risk sentiment has improved in the markets.
  • On the charts, the price of NQ has broken above the 12200 mark.

Today’s E-mini Nasdaq 100 (NQ) futures outlook is bullish after upbeat results from US companies overnight. Nasdaq futures gained 0.5% after stronger-than-expected results from Netflix offered a ray of hope to investors concerned about red-hot inflation and Federal Reserve rate hikes hurting corporate bottom lines.

On Thursday, the tech-heavy Nasdaq Composite added 3.1%. Netflix said it would resume customer growth this quarter after a smaller-than-expected drop in subscribers in Q2. Futures markets have also benefitted from the improved risk sentiment, especially in Europe.

“In addition to a tech-led rally in equities, the main news flow has been mostly about Europe. This news has lifted the euro back above 1.02 with core European yields also broadly higher,” said Rodrigo Catril, Senior FX Strategist at NAB, in a research note.

“So it has been a positive risk night, but recession fears certainly haven’t gone away, and the rebound in equities over the past week could as much reflect a recovery from oversold levels as extreme levels of pessimism,” he added.

Investors will pay close attention to the Eurozone’s monetary policy as the ECB is set to meet and hike rates at tomorrow’s meeting.

“There are many events ahead – in Europe over the next 2-3 days, and more broadly as the equity earnings season gets underway,” said Sim Moh Siong, senior currency strategist at the Bank of Singapore.

“A further bounce in risk assets is possible, but we think it is too early to shift from a defensive stance. The greenback will likely remain on the front foot into 3Q22.”

The major macroeconomic indicators still point to a looming recession and considerable downside potential in the equity markets, so the downtrend might return.

E-mini Nasdaq-100 (NQ) futures technical outlook:

E-mini Nasdaq 100 (NQ) futures 4-hour chart
E-mini Nasdaq 100 (NQ) futures 4-hour chart

On the 4-hour chart, the price has finally broken above 12201.00 after several failed attempts. However, to confirm this breakout, the price would need to retest this level and go on to make higher highs above it. However, if the price falls and closes below this level, that would mean the previous price move was a false breakout.

The price is in an uptrend as it is trading above the 30-SMA. The next key support level to watch will be the 11860 level.

The RSI value is around 67, which is near the overbought area. Hence, we can expect a downside retracement.